The mini-budget misses an opportunity of boosting the state’s economy by stimulating building and related activities in the housing sector, according to Shelter NSW.
This could have been done by enhanced capital funding for nonprofit rental housing programs, according to Mary Perkins, the Shelter NSW executive officer.
‘The construction of nonprofit rental housing has direct economic benefits in terms of jobs and purchase of building materials, in addition to the social benefits of providing affordable housing to low-income earners’, Ms Perkins said.
She said that the nonprofit rental housing sector – public housing, community housing, Aboriginal housing, and crisis accommodation – was not being allowed to realize its economic potential. Ms Perkins said that the number of completions of new dwellings in the nonprofit rental housing sector will be less this financial year than last year. The number of new nonprofit dwellings completed in 2008-09 will be 1,191, according to Housing NSW sources. This compares with 1,223 in 2007-08.
Ms Perkins said that investment in nonprofit rental housing had two important economic benefits. One was that this type of housing did not contribute to house price inflation. The second was that construction of this housing had multiplier effects that benefited the general community.
Ms Perkins condemned the minibudget’s cut of $80 million from the Department of Housing over 4 years, which is to be achieved by improved operational efficiency, reduced corporate overheads and leveraging of procurement savings. She said the $20 million cut in 2008-09 was a 2.5% cut in the department’s budget funding compared with the original allocation for this financial year.
‘It is very strange that the government talks about protecting “frontline services” from cuts, while reducing funding from the agency that provides housing assistance to low-income households’, she said.
Enquiries: Mary Perkins on 0419 919 091; (02) 9267 5733 ext. 14.
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